Problems foreseen for independent builders

Independent builders will struggle to operate under new legislation, Registered Master Builders Federation chief executive Warwick Quinn says.

He spoke at the federation's annual conference in Dunedin yesterday about changes to the Building Act and how they would affect the industry.

Mr Quinn said he could not see how stand-alone builders would be able to operate when the changes took effect.

It was an opportunity for the federation to ''market our professionalism'', he said.

Under proposed legislation, builders will be more accountable and have to give homeowners more information, such as mandatory written contracts and check lists.

They will have to supply detailed information about building projects, and whether they can offer guarantees, before contracts are entered into, and about warranties and building maintenance upon completion.

''I can't see in the future how a stand-alone builder can operate in such circumstances. How do they get on and operate in this new environment?'' Mr Quinn said.

''There is a greater onus on builders to provide upfront information and be more accountable. We have to get it right the first time, because we can't afford to get it wrong.''

He said, overall, the proposed changes meant less liability for councils, which would become ''record-holders''.

The federation supported the intent of the changes but had some concerns about parts of the legislation and wanted detail to be clarified, Mr Quinn said.

''There are still too many loose ends. Consultation will be needed with the sector to get the balance right.''

But one aspect of the legislation should be implemented now, he said. Risk-based consenting would make the Christchurch rebuild easier, because it would reduce paperwork for simple, low-risk projects and, therefore, most houses.

''We've already seen problems in Christchurch and they are developing as we speak. The council's had problems with the consenting process and problems getting CCCs [code compliance certificates] out, which means builders are not being paid and cash flow is strangled.

''We haven't even had the wave [of building] through yet.''

Mr Quinn said about 90% of projects were simple one-storey houses for which existing bureaucracy was ''over the top''.

The federation's annual conference ends tomorrow.

-rosie.manins@odt.co.nz

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